Economy - overview:
Economic activity in Mongolia has traditionally been based on herding and agriculture. Mongolia has extensive mineral deposits. Copper, coal, molybdenum, tin, tungsten and gold account for a large part of industrial production. Soviet assistance, at its height one-third of GDP, disappeared almost overnight in 1990 and 1991 at the time of the dismantlement of the USSR. The following decade saw Mongolia endure both deep recession due to political inaction and natural disasters, as well as economic growth because of reform-embracing, free-market economics and extensive privatization of the formerly state-run economy. Severe winters and summer droughts in 2000-2002 resulted in massive livestock die-off and zero or negative GDP growth. This was compounded by falling prices for Mongolia's primary sector exports and widespread opposition to privatization. Growth was 10.6% in 2004 and 5.5% in 2005, largely because of high copper prices and new gold production. Mongolia's economy continues to be heavily influenced by its neighbors. For example, Mongolia purchases 80% of its petroleum products and a substantial amount of electric power from Russia, leaving it vulnerable to price increases. China is Mongolia's chief export partner and a main source of the "shadow" or "grey" economy. The World Bank and other international financial institutions estimate the grey economy to be at least equal to that of the official economy, but the former's actual size is difficult to calculate since the money does not pass through the hands of tax authorities or the banking sector. Remittances from Mongolians working abroad both legally and illegally are sizeable, and money laundering is a growing concern. Mongolia settled its $11 billion debt with Russia at the end of 2003 on favorable terms. Mongolia, which joined the World Trade Organization in 1997, seeks to expand its participation and integration into Asian regional economic and trade regimes.
GDP (purchasing power parity):
$6.022 billion (2005 est.)
GDP (official exchange rate):
$1.393 billion (2005 est.)
GDP - real growth rate:
5.5% according to official estimate (2005 est.)
GDP - per capita (PPP):
$2,200 (2005 est.)
GDP - composition by sector:
agriculture: 20.6%
industry: 21.4%
services: 58% (2003 est.)
Labor force:
1.488 million (2003)
Labor force - by occupation:
herding/agriculture 42%, mining 4%, manufacturing 6%, trade 14%, services 29%, public sector 5% (2003)
Unemployment rate:
6.7% (2003)
Population below poverty line:
36.1% (2004 est.)
Household income or consumption by percentage share:
lowest 10%: 2.1%
highest 10%: 37% (1995)
Distribution of family income - Gini index:
44 (1998)
Inflation rate (consumer prices):
9.5% (2005 est.)
Budget:
revenues: $702 million
expenditures: $651 million; including capital expenditures of $NA (2005 est.)
Agriculture - products:
wheat, barley, vegetables, forage crops; sheep, goats, cattle, camels, horses
Industries:
construction and construction materials; mining (coal, copper, molybdenum, fluorspar, tin, tungsten, and gold); oil; food and beverages; processing of animal products, cashmere and natural fiber manufacturing
Industrial production growth rate:
4.1% (2002 est.)
Electricity - production:
3.24 billion kWh (2005 est.)
Electricity - consumption:
3.37 billion kWh (2005 est.)
Electricity - exports:
18 million kWh (2005 est.)
Electricity - imports:
130 million kWh (2005 est.)
Oil - production:
548.8 bbl/day (2005 est.)
Oil - consumption:
11,220 bbl/day (2005 est.)
Oil - exports:
515 bbl/day (2005 est.)
Oil - imports:
11,210 bbl/day (2005 est.)
Natural gas - production:
0 cu m (2003 est.)
Natural gas - consumption:
0 cu m (2003 est.)
Exports:
$852 million f.o.b. (2004 est.)
Exports - commodities:
copper, apparel, livestock, animal products, cashmere, wool, hides, fluorspar, other nonferrous metals
Exports - partners:
China 47.8%, US 17.9%, UK 15.7% (2004)
Imports:
$1.011 billion c.i.f. (2004 est.)
Imports - commodities:
machinery and equipment, fuel, cars, food products, industrial consumer goods, chemicals, building materials, sugar, tea
Imports - partners:
Russia 33.3%, China 23.6%, Japan 7.4%, South Korea 6%, US 4.6% (2004)
Debt - external:
$1.36 billion (2004)
Economic aid - recipient:
$215 million (2003)
Currency (code):
togrog/tugrik (MNT)
Exchange rates:
togrogs/tugriks per US dollar - 1,187.17 (2005), 1,185.3 (2004), 1,146.5 (2003), 1,110.3 (2002), 1,097.7 (2001)
Fiscal year:
calendar year
